We used to use the words, Significant Legislation, Landmark Legislation to preempt our interpretations of recent regulatory and tax law changes. Today is more Significant Interpretation Enactment. In 2014, President Obama directed the Secretary of Labor to update the DOL policy as regards overtime. This is a truly a sea change! The executive summary looks like this: If your employee is making less than $47,476 annually, they are now required to receive overtime at 1.5X their annual rate of pay. Do not be fooled into believing your exempt employees do not count! This covers exempt and non-exempt employees. Please raise a flag to your HR staff to ensure you will pass these new regulations. Penalty per occurrence is $10,000. The final rule takes effect December 1, 2016 and does NOT change any of the normal tests associated with employee classification testing, except add the annual income standard.
If you have any questions or would like more information, please do not hesitate to give us a call at our office, 314-993-4285.